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81. The Birth Of The Modern Chinese Banking Industry: Ri Sheng Chang

Author:
Vivid Lam, Oenone Kubie, and Christopher McKenna
Publication Date:
11-2019
Content Type:
Case Study
Institution:
Oxford Centre for Global History
Abstract:
Pingyao (平遥) is a remote place for a tourist attraction. Located in the centre of Shanxi province, it is some 380 miles from Beijing and further from Shanghai or Hong Kong where the tourists tend to congregate. Yet, despite the isolation, come they do to Pingyao. The nearest airport to Pingyao is in Tiayuan, over one hundred kilometres away, so most visitors arrive by coach or by train; along the poorly paved streets and past the decaying houses until they arrive in the middle of the city. Here the tourists disembark from their coaches and their trains and find themselves transported to the days of the Qing dynasty emperors, surrounded by imperial architecture. The tourists wander slowly towards West Street. This is the home of the most popular attraction: the headquarters of Ri Sheng Chang (日昇), a late Qing company which revolutionised Chinese banking, now a museum and an increasingly busy tourist attraction. This is the story of how it came to be and how the little city in a small province in China rose to prominence, became the financial centre of the world’s largest economy, fell to obscurity and, now, rises again.
Topic:
Tourism, Capitalism, Currency, Industry, and Banking
Political Geography:
China and Asia

82. The Political Economy of Exchange Rate Policy and Capital Control in Nigeria

Author:
Nathaniel E. Urama and Emeka Charles Iloh
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
African Heritage Institution (AfriHeritage)
Abstract:
This paper examines the primary cause of the exchange rate management failure in Nigeria by evaluating the motivating factor for these changes and reviewing the role of politics and interest group in the Nigerian exchange rate management. The findings show that politics, institutional incentives, and group interest mostly play a significant role in Nigeria’s exchange rate regime determination, as evidenced in the habit of changing the exchange rate system by almost all the political regimes that have existed in the country. More so, the changes are attributed to factors such as different parties and regimes having different macroeconomic preferences, incumbents’ efforts to increase their re-election prospects, and by interest groups that lobby for strong or weak currencies.
Topic:
Development, Economics, Political Economy, Exchange Rate Policy, Macroeconomics, Currency, and Capital Controls
Political Geography:
Africa and Nigeria

83. Political Signals: Why Are Some Countries Abandoning the Dollar in Their Foreign Trade?

Author:
FARAS
Publication Date:
10-2018
Content Type:
Commentary and Analysis
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
Several Middle Eastern countries, such as Turkey and Iran, have been recently shifting into international currencies or local currencies, instead of the US dollar, in their foreign trade. This shift comes amid the US economic sanctions on Iran in tandem with its souring relations with Turkey. What is striking in this regard is that there is an international acceptance of other currencies, especially the Chinese yuan, with the pricing of some oil contracts in the same currency. This move seems to have a particular political significance, namely rejecting the impact of the US dollar on the trade of these countries rather than its economic feasibility, amid the sharp fluctuations in the local currencies of Iran, Turkey, and India in the past period.
Topic:
Economics, International Trade and Finance, Currency, and Trade Policy
Political Geography:
Russia, China, Iran, Eurasia, Middle East, North America, and United States of America

84. Helsinki’s Interests: Why Does Finland Show Interest in the Middle East?

Author:
FARAS
Publication Date:
10-2018
Content Type:
Commentary and Analysis
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
The recent years have witnessed a growing interest from Helsinki in the transformations and interactions of the Middle East, as evident in the inauguration of academic institutes in the region, visits by diplomatic and parliamentary delegations, activities with research centers, proposals for the resolution of conflicts between political parties, meetings between joint business councils and representatives of chambers of commerce and enhancing the cooperation with Arab intelligence agencies. The Finnish government has several objectives within this calculus.
Topic:
Geopolitics, Investment, and Currency
Political Geography:
Europe, Middle East, Finland, Libya, North Africa, and Syria

85. Digital Fiat Currency, SDR and New Cross-Border Payment System

Author:
Liu Dongmin and Song Shuang
Publication Date:
03-2018
Content Type:
Policy Brief
Abstract:
Emerging economies have played more and more important roles in the world, and have become a significant drive in the reform of global financial governance to push it towards the direction of inclusiveness and resilience. As a key part of the international financial architecture, the dollarized cross-border payment system has not been changed correspondingly. Along with the rapid development of digital currency, the digital fiat currency (DFC) endorsed by national credit shows great potential in improving the current cross-border payment system. We propose that the new system based on DFC can be done in three patterns and the third one is most feasible: IMF-leading pattern, countries-leading pattern and the coexisting pattern. The new system will effectively reduce the transmission time and cost of cross-border payment services due to DFC’s peer-to-peer mode. Moreover, as the new system becomes more open, more flexible and more inclusive, all the developing countries will get fair and easy access to these services.
Topic:
Finance, Currency, and Economic Development
Political Geography:
China, Global Focus, and Global Markets

86. Conditional Pricing of Currency Risk in Africa's Equity Market

Author:
Odongo Kodongo and Kalu Ojah
Publication Date:
01-2018
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
In this paper, we sought to establish whether Africa’s volatile currencies drive equity risk premium. We use the stochastic discount factor (SDF) framework to estimate various conditional specifications of the International Capital Asset Pricing Model through generalized method of moments technique. Our results show strong evidence of conditional, time-varying currency risk premium in equity returns. Currency risk is also perceived by international investors as important in informing the equities pricing kernel. We also find evidence that international investors are worried about Africa’s small size equity markets and build anticipated low trading into their pricing calculus.
Topic:
Development, Economics, International Trade and Finance, Global Political Economy, Economic Growth, Capital Flows, Currency, and Profit
Political Geography:
Africa

87. Virtual currencies and their potential impact on financial markets and monetary policy

Author:
Lukasz Janikowski and Marek Dabrowski
Publication Date:
09-2018
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
Virtual currencies are a contemporary form of private money. Thanks to their technological properties, their global transaction networks are relatively safe, transparent, and fast. This gives them good prospects for further development. However, they remain unlikely to challenge the dominant position of sovereign currencies and central banks, especially those in major currency areas. As with other innovations, virtual currencies pose a challenge to financial regulators, in particular because of their anonymity and trans-border character.
Topic:
Science and Technology, Monetary Policy, Economic Growth, Currency, and Trade
Political Geography:
Europe, Poland, and European Union

88. The Rise of Petroyuan

Author:
Dan Steinbock
Publication Date:
01-2018
Content Type:
Special Report
Institution:
Georgetown Journal of International Affairs
Abstract:
In the late 20th century, U.S. petrodollar dominated the world economy. In the 21st century, we are witnessing the rise of the Chinese petroyuan. This ascent could speed up the erosion of the dollar’s dominance after a century of power. The U.S. dollar still accounts for 39% of international payments – more than the euro (33%), English pound (7%), Japanese yen (3%) and Chinese yuan (28%) – but times are changing.
Topic:
Oil, History, Natural Resources, Economy, and Currency
Political Geography:
China, Asia, North America, and United States of America

89. From Meseberg to Nowhere? A Franco-German Impetus for the Eurozone

Author:
Eileen Keller
Publication Date:
11-2018
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
This study analyses the joint efforts by France and Germany to bring about a comprehensive reform of the European currency union. These efforts culminated in the joint Meseberg Declaration adopted in June 2018. The article contextualises these efforts with respect to the reforms realised so far and the different reform options at hand. Besides questions of economic viability and institutional deficits, the article tackles issues of political feasibility. “From Meseberg to nowhere” was the prognosis given by Werner Mussler, economic correspondent for the Frankfurter Allgemeine Zeitung in Brussels. Commenting on the outlook for the joint declaration by the French President and German Chancellor on 19 June, following protracted negotiations at the German Government's official guest house at Schloss Meseberg, near Berlin, the journalist was critical of both the compromises it contained on strengthening the euro area and the chances of these ever being implemented. There is no question that the negotiations on the development of the euro area come at a difficult time. However, there are still good grounds for reaching a different conclusion. Both valid economic and political reasons can be found for the reforms proposed in the declaration, the details of which have yet to be developed. Anyone broaching the subject realistically knows that negotiations on economic and monetary union have always been challenging, due to differing concepts of economic policy and divergent economic needs and interests. At the same time, the two figures responsible for the Meseberg Declaration are both exceptional political personalities whom have shown in the past that they can cope with difficult negotiations, and can achieve remarkable results – on condition that Angela Merkel remains in office.
Topic:
Regional Cooperation, Bilateral Relations, European Union, Economy, Negotiation, and Currency
Political Geography:
Europe, France, and Germany

90. Restoring central bank capacity and stabilizing the rial

Author:
Sana'a Center for Strategic Studies
Publication Date:
02-2018
Content Type:
Policy Brief
Institution:
Sana'a Center For Strategic Studies
Abstract:
As part of the “Rethinking Yemen’s Economy” initiative, more than 20 of the leading socioeconomic experts on Yemen converged for the second Development Champions Forum on January 14-16 in Amman, Jordan. Among the urgent topics of discussion was the deterioration of the value of the Yemeni rial (YR), the magnifying impact this is having on the humanitarian crisis, and the need to re-empower the Central Bank of Yemen (CBY) as the steward of the rial and the economy generally. This policy brief is an outcome of those discussions, and the recommendations it includes collectively underline the need for the CBY to function in a more coherent, assertive manner – whereby its various branches operate as a united entity that is able to draft and implement monetary policies for Yemen as a whole. This paper includes further input from the Development Champions following the announcement by Saudi Arabia on January 17 of a $2 billion deposit to the CBY. Restoring central bank capacity and stabilizing the rial - Sana'a Center For Strategic Studies https://sanaacenter.org/publications/main-publications/5360
Topic:
Development, Economy, Central Bank, and Currency
Political Geography:
Middle East and Yemen